The ______ is the volume at which the sum of inventory carrying costs and order-processing costs is at a Minimum.
A) economic order quantity
B) break-even quantity
C) marginal revenue
D) inventory quota
E) equilibrium point

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) model is designed to minimize the total inventory costs, which include both the inventory carrying costs and the order-processing costs. This model calculates the optimal order quantity that a company should purchase to minimize these costs.

The ______ Is the Volume at Which the Sum of Inventory